[Teddi Knight]

Per my earlier posts…
1/6 STO 3 x Feb 20 100 puts @ 1.42
2/19 BTC 3 x Feb 20 100 puts @ 0. 38

Addtl trades to offset possible losses/ facilitate a roll dn and out during this trade were:

1/20 STO 5 x Feb 20 97.5 puts @ 1.21
1/22 BTC 5 x Feb 20 97.5 puts @ 0.38

2/12 STO 3 x Mar 13 95 puts @ 0.90
haven’t closed this one yet, will close at 0.22 if I can, and wait for further developments in JNJ for new entries at lower strikes per Teddi’s analysis

[Teddi Knight]

KO raises it’s dividend by 8%.

[Teddi Knight]

Sold Mar20 $45/41 put @ .36

[Teddi Knight]

Ahh, KO just mentioned on CNBC with a huge volume of May 44 calls being bought. Your put sale was right on! Teddi, you got the mojo!

[Teddi Knight]

agree rishi. I am also out of HAL for the time being with a profit. Better to lose an opportunity than make a big mistake. I will wait for the chart to talk.

[Teddi Knight]

Thanks for the GREAT suggestion. Chicken plucking can be quite profitable:) I used to have it on my radar, but it fell off after a while!

Amy

[Teddi Knight]

Did your trade in SO Teddi. I will take the stock at $45, and collect the income plus covered calls. I don’t think the economy is so great, numbers seem to be supporting that, so dividend stocks should be in favor again soon.

[Teddi Knight]

Buy to close MSFT Feb20 $44 put at .63
Roll out MSFT Mar20 $44/40 put at 1.11

[Teddi Knight]

I am in here with you all too.

Just sold the March 13 81.50/76.50 put spread for $.48

I like that I am below 100 ema and right at 200 ema. Also below a big fib extension level from the highs.

-Patrick

[Teddi Knight]

STO WMT Mar 6 82.5 @ 0.64

[Teddi Knight]

SOLD -1 WMT 100 MAR 15 80 PUT @.45 on 2/19 at 9:56am

[Teddi Knight]

The latest topics with active replies are always on top. Eventually older topics will drop off after several months.

[Teddi Knight]

Yes, still holding calls on the SPY although I was stopped out a few weeks back

[Teddi Knight]

I use the market direction outlook as the market direction portfolio follows the trend.

[Teddi Knight]

Yes, my apologies. I meant to say that the price point or price valuation makes it easier to trade the SDOW at present than the UDOW. It is similar on the TSX where I trade the HXD and HXU. The HXD has far less movement just because of the price valuation since the markets have risen so much higher over the past 6 years.

[Teddi Knight]

Higher for sure right now. I don’t think anyone can pick tops or bottoms. I prefer to follow the trend daily when it comes to market direction.

[Teddi Knight]

I think more from knowledge and trading these ETFs. I first started out with UDOW and since then I have stayed with it. I prefer the DOW for trading the market direction portfolio and not the S&P. The DOW has wider daily swings more often than the S&P does. Whereas both may end up or down around the same percentage, the DOW seems to have better intraday swings which can make entry and exit more profitable. Your Ultra’s are S&P based. Just a personal observation.

[Teddi Knight]

I like this trade a lot. I did a review and I am considering a small trade for Thursday. Let us see if the stock can dip on Thursday and push up the $45 put strike for March 20. That will be my main point of interest. Here is my write-up along with 3 trade ideas for Southern Company Stock. https://www.fullyinformed.com/trade-ideas-and-analysis-southern-company-stock-so-feb-18-2015/

[Teddi Knight]

Yes the stock was too cheap to be sure. Nice move back up today. Nice trade premium earned. This is a perfect trade in my opinion.

[Teddi Knight]

I use interactive broker, TD Waterhouse web and active trader, quatrain and all shows last purchase price of strikes. Don’t worry if the bid and ask are wide. On less liquid options that can be common at times. Pick a premium you prefer and place your offer and wait it out. Often the bid and ask are wide because both sides of the trade are the market maker as there are no bids or asks from investors. Many times a wide bid and ask can stay there for several days. Watch what happens when you make an actual offer or bid. You will see the market maker moves his prices quickly and accordingly.

[Teddi Knight]

I like this trade Bill and it is easy to repair it if you do not want to own stock. Tomorrow should be interesting to see how earnings turn out.

[Teddi Knight]

Thanks for your question.
Definitely improving the return and adding to protection. I do this fairly often but just don’t have enough time in the day to keep writing and updating all the trades. This is also why I always say, there is no golden rule that advises that you have to hold a trade until expiry. It is all about getting capital to work as hard as it can for my portfolio while building stronger and stronger protection into a trade.
Nothing within Facebook Stock movements told me to revisit this trade. I keep excel spreadsheets that I just manually pluck in numbers to see how trades are unfolding. That’s often where I see a chance to improve a trade.

[Teddi Knight]

Very interesting article, Teddi. Thanks.

My question is, was there something that you saw in the chart and technicals for FB that prompted you to restructure the trade, or was it just taking advantage of an opportunity to improve the return and reduce the risk?

[Teddi Knight]

JNJ is terrific. Forget the worries and aim for better premiums. Focus on getting those premiums. This will pass. I am placing a number of new trades in JNJ and adding to my existing positions. At $100 you are a bit high. Review my last trades in JNJ for better strike positions.

[Teddi Knight]

Alibaba is not going to zero. Investors need to understand what a speculative trade in a large cap is about. Alibaba is volatile which is what we as investors want to earn bigger premiums. The key is to not overextend yourself in these types of trades. I had one covered call. By then buying more shares in the pullback and selling deeper in the money calls against the next trade, it reduces the cost of the first trade. The first trade which ended up a bit in the money is then worked lower and then sideways to earn more income. You have think beyond a week or two and instead consider months of trading the stock. I entered into Alibaba last year in November. I will be trading it for a long time to come. I am expecting the stock this year will recover back above $100 and probably recover to $120 in the next 12 months. Meanwhile I am earning income continually with the small positions I am doing. I will update the Alibaba trades as soon as I finish the Apple updates.

[Author]

Posts